Gold Prices Soar to Record High, Silver Nears Peak Amid Global Tensions
On Wednesday, gold prices surged to a historic record while silver continued trading just marginally below its all-time high. This remarkable rally in precious metals was driven by investors rushing towards safe-haven assets amid ongoing geopolitical and trade-related uncertainty.
Geopolitical Triggers Fueling the Rally
The surge in precious metals followed the US Supreme Court's decision to delay ruling on the legality of Donald Trump's trade tariffs. This development revived demand for gold and silver as a protective hedge. Tensions remained elevated after Trump issued tariff threats to European countries regarding his bid to take over Greenland, further amplifying market anxiety.
Domestic Market Performance
In the domestic Indian market, MCX gold futures expiring on February 5, 2026, surged by Rs 3,266, representing a significant 2% increase to reach Rs 1,53,831 per 10 grams. Similarly, MCX silver futures for March 5, 2026, delivery moved higher, rising by Rs 2,098, or 0.6%, to settle at Rs 3,25,900 per kilogram.
International Market Dynamics
Internationally, gold prices crossed the $4,800 per ounce mark to achieve a fresh lifetime high. This upward movement was supported by robust safe-haven buying and a weaker US dollar. Silver prices, however, retreated slightly from their record levels, with spot silver slipping 1% to $93.59 per ounce after touching an all-time high of $95.30 in the previous trading session.
Factors Intensifying Safe-Haven Demand
The demand for these safety net assets intensified significantly after Trump imposed tariffs on eight European countries and reiterated his ambition regarding Greenland. This prompted panic selling in riskier assets, driving more capital towards precious metals. Additional support for bullion prices emerged as US 10-year bond yields touched four-month highs, driven by selling pressure in Japanese bonds. Furthermore, weakness in the Indian rupee contributed to gains in domestic gold and silver prices.
Expert Analysis and Market Outlook
Manoj Kumar Jain of Prithvi Finmart told ET that both gold and silver are witnessing increased volatility. He noted that silver is expected to maintain support at $84 per troy ounce, while gold could sustain above $4,440 per troy ounce on a closing basis. Jain added that prices are likely to remain volatile during the week, influenced by movements in the dollar index, the US President's speech, and ongoing geopolitical developments.
On the domestic front, Jain identified specific support and resistance levels:
- MCX Gold: Support at Rs 1,48,800–1,46,600, with resistance at Rs 1,52,500–1,55,000
- MCX Silver: Support at Rs 3,16,000–3,08,500 and resistance at Rs 3,30,000–3,38,000
He advised traders to strictly avoid short selling in both metals and follow a buy-on-dips strategy as long as gold remains above Rs 1,44,000 and silver stays above Rs 3,03,000. Based on this strategy, he expects gold to move towards Rs 1,55,000 and silver towards Rs 3,38,000.
Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.
